Consumers Lose Again…Only 2 of 3 FICOs Will Be Available – Episode #112
Once again, the consumer seems to lose again this week. This time, the news comes from the myFICO.com webpage which reads…
This is really bad news for the consumer which for years has been able to get access to all 3 FICO Scores exclusively from one source, myFICO.com. It appears that Fair Isaac was served a termination notice, and that Fair Isaac must remove all products by February 14th unless a remedy can occur. Happy Valentines Day.
What will this mean for Consumers?
- Consumers will not be able to get FICO scores from all three bureaus directly. This Experian FICO Score will only be available via their lenders. Consumers will only have access to their Equifax and Trans Union FICO Scores
- This will likely mean that more consumers will pull non-FICO scores and that these scores will often not be similar to the FICO Scores that lenders see. 30% of users could have a 50 point swing in their scores. Don’t believe me? Watch my TrueCredit review to see that, at the time I pulled both TU scores, my TU FICO was a 790 and my TU non-FICO was a 739 — a 51 point difference. This in turn, can lead to consumer harm. For example, a consumer with a 680 non-FICO might have a 750 FICO score, but as they don’t know it, a lender may use this knowledge to offer less competitive rates. Sure, they will disclose the 750 score, but they may sense a lack of knowledge on the prospect and offer less competitive rates.
What will this mean for myFICO?
- The FICO Complete product and the Suze Orman FICO Kit will have to be restructured. The Suze Kit already allows for 3 report pulls from any 3 bureaus and that will change to
- Score Watch will be unchanged and likely become a focal point of myFICO’s sales stategy.
Why is this happening?
- Experian owns FreeCreditReport.com and myFICO.com competes with that site, so they have an incentive to break off the contract. With myFICO only able to offer 2 FICO Scores, their product will face comparative challenges from products which offer 3 credit scores from all 3 credit bureaus.
- myFICO has been experimenting with Free FICO Scores and that may be a threat to the folks at Experian
- Experian is in a lawsuit with Fair Isaac over enterprise related scoring issues.
What can you do?
- Post a complaint to the FTC.
- Write your congressman.
- Get your Experian FICO Score in what little time is left.
- What’s a Beacon Credit Score? – Episode #13
- Do Consumers Really Understand Credit Scores? – Episode #48
- Do Lender Credit Reports and Credit Scores Look Different? – Episode #35
- Why are there 3 Credit Reporting Agencies? – Episode #98
- Credit Bureau vs. Credit Reporting Agency – Episode #77
- How To Get Your Credit Scores – Lesson #3